If the Anticipated Productivity of Capital Investment Decreases, the Demand

question 16

Multiple Choice

If the anticipated productivity of capital investment decreases, the demand for loanable funds

• A)increases.
• B)decreases.
• C)remains the same.
• D)reaches equilibrium.

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Definitions:

Responsible Corporate Officer Doctrine

A legal principle that holds company executives personally liable for the illegal actions of their company if they were in a position to prevent the actions.

Personally Liable

The legal responsibility of an individual to settle a debt or obligation from their own assets.

False Pretenses

A fraudulent and intentional misrepresentation of fact made by one person to another to induce the other to give up some valuable thing or relinquish a legal right.

Ponzi Scheme

A fraudulent investment scam promising high rates of return with little risk, which pays profits to earlier investors with funds from more recent investors.